Hi Nemo1, sorry to come in on your post, I don't fully understand what the equity is that has to be paid, how do I find out about the equity on my house, and can the equity not be released from the lender to pay of the TD, not sure how it works, maybe the experts have some advice

Hi, I just asked my trustee what the equity figure was that We'l need to pay?

Do they find out the value of your house at the start of the TD, and does it change over the term, I have 13 more months to go, maybe need to start asking questions

Hi poprey

I think only your trustee will be able to confirm the position with equity, although the matter should have been discussed and agreed at the start.

On the matter of early settlement, unfortunately this is something else only your trustee will be able to confirm as firms will have various approaches to this.

Mark

Hi Nemo1.

In terms of your original question, I think you're going to struggle.

Unsecured lenders must assess affordability as part of their lending process or risk the wrath of the FCA. Would lending to someone who is technically insolvent be seen as responsible lending? I think many lenders wouldn't want to test that point with their regulator.

If you are successful, I think you can assume a fairly chunky rate of interest. This means it's going to take you longer to really free yourself of the trust deed - you'll just be swapping one financial commitment for a different one that will cost you more and probably last longer.

Is it truly worth paying much more to build up your credit rating? There will be no interest on the sum for equity if you pay it directly from income into the trust deed.

For me, if a loan was available from family to do this it could make sense. With lots of interest it doesn't make much sense financially, assuming that a loan can be found at all. Different people will take a different view on this though I guess.

A family member would probably help us but they don't know about the TD... I've lasted nearly 3 years without the shame of telling them so don't really want to now. But I agree with you regarding the high interest of a loan. When you think about it it's really not worth it!

I'm glad that you agree Nemo1.

No point in paying more than you need to - I'm sure that you'll find a much better use for that money.

It's always good to come on here. Sometimes what you need is perspective! Might try pluck up the courage to tell the parents...

They mentioned my equity is about £500 each for me and my wife, does this mean that after my next 13 payments I need to find another £1000 before they discharge us

Quite possibly poprey, but you need to check that with your trustee.

TDA, just having a thought... If I did tell my family, I'm pretty sure they'd want to help end the TD altogether. If we were to pay an early settlement fee, would this include the remaining payments to take it to the 3 years, plus the equity? Or would there be other costs like fees?

I don't think there would be any extra costs Nemo1. Just remaining contributions plus equity.

However, you'll want to speak to your trustee first to establish whether they're even prepared to bring the trust deed to an early end.

Does it benefit them to make it run longer? In all honestly I don't think I could bring myself to tell anyone anyway...! Don't think I could stand the look of shame...!

It may in some marginal way benefit them to end it sooner Nemo1. You could argue it either way. I don't think that's the main consideration though - different trustees just seem to see this differently under the old system.